Shares of Harris Technology Group Ltd [ASX:HT8] are up 20%, to trade at 12 cents at the time of writing.
The HT8 share price jumped on the back of significant sales growth.
What’s happening at Harris Technology Group?
2020 is proving to be an incredibly strange year for business. The effects of COVID-19 are both negative and positive, depending on which sector the business is in.
For HT8 the effects are now proving to be positive.
The company announced their half-year financial results recently, which are much improved compared to December 2019.
- December 2019 — $4.1 million
- June 2020 — $9.9 million
And a big chunk came in August. For this month, company revenue was $3.32 million in 2020, compared to $650,000 in August 2019 — representing an increase of 411%.
HT8 has a hygiene division selling items such as masks and hand sanitiser, which are likely to have seen sales surge on Victorian Government restrictions. The company has cautioned that sales of Pro-Hygiene products may slow down as restrictions are eased in Victoria and other Australian states.
But for now, it’s a remarkable turnaround for the company.
HT8 share price chart
Like a lot of technology-focused companies, Harris Technology saw its stock price skyrocket through the pandemic, up 1,900% before falling away in recent weeks.
With other tech companies such as Afterpay Ltd [ASX:APT] and Kogan.com Ltd [ASX:APT] following a similar trend. Though perhaps not as explosive as this small-cap.
Harris Technology holds a market cap of $25.5 million, so it isn’t in the league of market juggernauts like Afterpay or Kogan.
In a small company, little movements in price can mean big things. If the HT8 share price can continue to the upside, then the level of 14 cents may become the focus.
On the downside, should the price decline, then the level of 10 cents may be enough to halt a fall.
For Money Morning
PS: Four Well-Positioned Small-Cap Stocks: These innovative Aussie companies are well placed to capitalise on post-lockdown megatrends. Click here to learn more.